Sidama earns US$3.3M from avocado oil exports

ETHIOPIA – The Sidama Regional Industrial Parks Development Corporation has reported earnings of more than US$3.3 million from avocado oil exports in the fiscal year ending March 31.

According to Hailu Yietera, CEO of the Corporation, the Yirgalem Agro-Industrial Park processed 16,000 tons of raw materials during the same period.

“While avocado oil remains the park’s primary product, new ventures in milk, honey, bananas, coffee, and juice processing have recently been launched,” he told the Ethiopian Press Agency.

Currently, the park hosts 32 projects, including eight that began last year. Alongside export earnings, domestic sales of by-products added another US$300,000 in revenue.

Hailu stressed that the park’s role extends beyond income generation. “More than 137,000 farmers have been connected directly to the market through cooperatives and youth organizations, reducing reliance on middlemen and ensuring higher returns for local producers,” he said.

Looking ahead, the Corporation plans to roll out 13 new projects in the 2018 fiscal year and raise the raw material volume to 25,000 tons.

Officials also confirmed that 14 hectares of land will be transferred to investors, with stronger focus placed on product quality and waste reduction.

Yirgalem Agro-Industrial Park, established five years ago with only two companies, has expanded into a key agro-industrial hub in Sidama. Today, it provides permanent jobs for 1,620 people, of whom 52 percent are women.

Global avocado oil market trends

The earnings in Sidama come at a time when global demand for avocado oil continues to rise. Market data shows that in 2023 the avocado oil sector stood at US$604.76 million and is projected to reach US$637.42 million in 2024.

Forecasts suggest the market could grow to US$1.13 billion by 2032, representing a compound annual growth rate of 7.48 percent between 2024 and 2032.

Health concerns and lifestyle changes are driving the global market. High monounsaturated fat content and vitamin E in avocado oil have made it popular for cooking, skincare, and wellness. Consumers are also leaning toward natural and organic products, adding to the steady rise in demand.

Industry experts note that the growing prevalence of lifestyle-related diseases has also encouraged healthier diets, further supporting avocado oil’s position in international markets.

As Sidama expands its agro-industrial activity, the region’s success mirrors a broader global trend that continues to shape the future of avocado oil production and trade.

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